IBM Still Mired in Layoff Spiral

As IBM continues to quietly lay off more than 4,800 workers, the company takes another blow to its image as documents leak about an effort called Project Match. Project Match helps IBM's U.S. and Canadian employees find jobs in countries where IBM is expanding, such as India and China, while IBM eliminates positions in the United States. Robert E. Kennedy, a professor at the University of Michigan's Ross School of Business, says global sourcing and offshoring are realities that IT infrastructure and software companies like IBM and their employees must come to accept. Also, as high-tech layoffs continue, what impact will there be on H-1B workers?

IBM continues to lay off employees and to
take heat from employee groups for its practice of not providing more information
such as exact numbers or other particulars on the layoffs. The word is IBM
has eliminated nearly 5,000 positions since the action began in January,
according to sources.
An IBM employee organization called
Alliance@IBM says IBM
has laid off more than 4,800 people, including 1,449 in Sales and Distribution,
1,419 in the IBM Software Group, 1,200 in IBM's
Systems and Technology Group, 307 in IBM
Finance, 193 in IBM Research, and 92 in
human resources.

Meanwhile, according to reports, IBM
has an effort called "Project Match" that aims to help IBM
employees in the United States and Canada move overseas to work for IBM,
or essentially "offshoring" themselves.

Although the Project Match initiative has been characterized as an either/or
solution-where IBM employees are encouraged
to either accept a job in India (or elsewhere) or lose their positions in the
United States-it does not appear to be exactly that.
Of course, word of Project Match leaking as IBM
is in the throes of a broad-based layoff that is a potential source of
embarrassment for the company. The goal of the program-as stated in a document
describing the program obtained by eWEEK-is not simply to displace workers or
present them with unpalatable choices.
The document says, "IBM has
established Project Match to help you locate potential job opportunities in
growth markets where your skills are in demand."
According to the document, countries where opportunities are available
include Argentina,
Brazil, Mexico,
Czech Republic,
Hungary, Nigeria,
Poland, Romania,
Russia, South
Africa, India
and China.
In addition, the Project Match document said, "Should you accept a
position in one of these countries, IBM
offers financial assistance to offset moving costs, [and] provides immigration
support, such as visa assistance, and other support to help ease the transition
of an international move."
Moreover, the document said:

Project Match is a fit for IBMers who
are:
Eager to broaden their career and
develop new business skills by living and working abroad-a valuable commodity
in today's global economy.
Excited at the prospect of
contributing to a developing economy, potentially taking on different job responsibilities.
Open to new experiences and cultures.
Satisfactory performers who have been
notified of separation from IBM US or Canada and are willing to work on local terms and
conditions.

Indeed, that last point is the kicker, as it points to employees who have
been notified of "separation" from the company. Yet, IBM
officials say Project Match is not intended as a primary outlet for such
employees for a number of reasons-among them that the number of Project Match
positions is limited.
Robert E. Kennedy, author with Ajay Sharma of a book on offshoring called "The Services Shift: Seizing the Ultimate
Offshore Opportunity," executive director of the William E.
Davidson Institute and the Tom Lantos Professor of Business Administration at
the University of Michigan's Ross School of Business, told eWEEK he believes IBM
has simply come to grips with the new global economy and is making use of
talent available throughout the world to reach maximum productivity and
efficiency.
In Kennedy's view, asking IBM to refrain
from employing overseas workers directly affects U.S.
consumers, slows innovation and hurts the company's overall health.
Regarding the IBM layoffs, Kennedy told
eWEEK, "There are at least two big pressures driving this. One is, by far,
there is an economic downturn and IBM sales
are suffering so they have to make cuts. And two is that globalization has come
to the service sector and IBM knows it can
move some jobs offshore."

Darryl K. Taft covers the development tools and developer-related issues beat from his office in Baltimore. He has more than 10 years of experience in the business and is always looking for the next scoop. Taft is a member of the Association for Computing Machinery (ACM) and was named 'one of the most active middleware reporters in the world' by The Middleware Co. He also has his own card in the 'Who's Who in Enterprise Java' deck.